What is LIQUIDITY PREMIUM? What does LIQUIDITY PREMIUM mean? LIQUIDITY PREMIUM meaning - LIQUIDITY PREMIUM definition - LIQUIDITY PREMIUM explanation.
Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license.
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In economics, a liquidity premium is the explanation for a difference between two types of financial securities (e.g. stocks), that have all the same qualities except liquidity. It is a segment of a three-part theory that works to explain the behavior of yield curves for interest rates. The upwards-curving component of the interest yield can be explained by the liquidity premium. The reason behind this is that short term securities are less risky compared to long term rates due to the difference in maturity dates. Therefore investors expect a premium, or risk premium for investing in the risky security. Liquidity risk premiums are recommended to be used with longer term investments, where those particular investments are illiquid.
Assets that are traded on an organized market are more liquid. Financial disclosure requirements are more stringent for quoted companies. For a given economic result, organized liquidity and transparency make the value of quoted share higher than the market value of an unquoted share.

Liquidity premium

In economics, a liquidity premium is the explanation for a difference between two types of financial securities (e.g. stocks), that have all the same qualities except liquidity. It is a segment of a three-part theory that works to explain the behavior of yield curves for interest rates. The upwards-curving component of the interest yield can be explained by the liquidity premium. The reason behind this is that short term securities are less risky compared to long term rates due to the difference in maturity dates. Therefore investors expect a premium, or risk premium for investing in the risky security. Liquidity risk premiums are recommended to be used with longer term investments, where those particular investments are illiquid.

Assets that are traded on an organized market are more liquid. Financial disclosure requirements are more stringent for quoted companies. For a given economic result, organized liquidity and transparency make the value of quoted share higher than the market value of an unquoted share.

Market liquidity

In business, economics or investment, market liquidity is a market's ability to facilitate the purchase or sale of an asset without causing drastic change in the asset's price. Equivalently, an asset's market liquidity (or simply "an asset's liquidity") describes the asset's ability to sell quickly without having to reduce its price to a significant degree. Liquidity is about how big the trade-off is between the speed of the sale and the price it can be sold for. In a liquid market, the trade-off is mild: selling quickly will not reduce the price much. In a relatively illiquid market, selling it quickly will require cutting its price by some amount.

Money, or cash, is the most liquid asset, because it can be "sold" for goods and services instantly with no loss of value. There is no wait for a suitable buyer of the cash. There is no trade-off between speed and value. It can be used immediately to perform economic actions like buying, selling, or paying debt, meeting immediate wants and needs.

Yield curve

In finance, the yield curve is a curve showing several yields or interest rates across different contract lengths (2 month, 2 year, 20 year, etc...) for a similar debt contract. The curve shows the relation between the (level of) interest rate (or cost of borrowing) and the time to maturity, known as the "term", of the debt for a given borrower in a given currency. For example, the U.S. dollar interest rates paid on U.S. Treasury securities for various maturities are closely watched by many traders, and are commonly plotted on a graph such as the one on the right which is informally called "the yield curve". More formal mathematical descriptions of this relation are often called the term structure of interest rates.

The shape of the yield curve indicates the cumulative priorities of all lenders relative to a particular borrower, (such as the US Treasury or the Treasury of Japan) or the priorities of a single lender relative to all possible borrowers. With other factors held equal, lenders will prefer to have funds at their disposal, rather than at the disposal of a third party. The interest rate is the "price" paid to convince them to lend. As the term of the loan increases, lenders demand an increase in the interest received. In addition, lenders may be concerned about future circumstances, e.g. a potential default (or rising rates of inflation), so they offer higher interest rates on long-term loans than they offer on shorter-term loans to compensate for the increased risk. Occasionally, when lenders are seeking long-term debt contracts more aggressively than short-term debt contracts, the yield curve "inverts", with interest rates (yields) being lower for the longer periods of repayment so that lenders can attract long-term borrowing.

What is LIQUIDITY PREMIUM? What does LIQUIDITY PREMIUM mean? LIQUIDITY PREMIUM meaning - LIQUIDITY PREMIUM definition - LIQUIDITY PREMIUM explanation.
Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license.
SUBSCRIBE to our Google Earth flights channel - https://www.youtube.com/channel/UC6UuCPh7GrXznZi0Hz2YQnQ
In economics, a liquidity premium is the explanation for a difference between two types of financial securities (e.g. stocks), that have all the same qualities except liquidity. It is a segment of a three-part theory that works to explain the behavior of yield curves for interest rates. The upwards-curving component of the interest yield can be explained by the liquidity premium. The reason behind this is that short term securities are less risky compared to long term rates due to the difference in maturity dates. Therefore investors expect a premium, or risk premium for investing in the risky security. Liquidity risk premiums are recommended to be used with longer term investments, where those particular investments are illiquid.
Assets that are traded on an organized market are more liquid. Financial disclosure requirements are more stringent for quoted companies. For a given economic result, organized liquidity and transparency make the value of quoted share higher than the market value of an unquoted share.

This short lecture will present the financial definition of interest and discuss the factors that affect nominal interest rates; including inflation, default risk, maturity risk (yield curve) and liquidity risk.
Learning business English is like learning a new language.

7:01

Why is LIQUIDITY So Important?

Why is LIQUIDITY So Important?

Why is LIQUIDITY So Important?

When it comes to trading betting exchanges, liquidity is king. In fact, without it not a lot else matters. In order to limit your risk and maximize profits, you must have GENUINE betting liquidity. In this Q & A Caan clears up an important point; something that in most cases, goes misunderstood! Betting liquidity.
Follow my sports trading journey here:
https://www.youtube.com/caanberry
—
► Subscribe to my channel here: https://t.co/CXlzOLkhqT
—
Caan Berry successful Betfair trader featured by Betfair, matchbook, and Betdaq. Specialising in horse racing, tennis on the sports exchange market.
Make sure to stay tuned for Caan’s latest videos on how to trade on the sports exchange market.
—
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What is LIQUIDITY PREMIUM? What does LIQUIDITY PREMIUM mean? LIQUIDITY PREMIUM meaning - LIQUIDITY PREMIUM definition - LIQUIDITY PREMIUM explanation.
Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license.
SUBSCRIBE to our Google Earth flights channel - https://www.youtube.com/channel/UC6UuCPh7GrXznZi0Hz2YQnQ
In economics, a liquidity premium is the explanation for a difference between two types of financial securities (e.g. stocks), that have all the same qualities except liquidity. It is a segment of a three-part theory that works to explain the behavior of yield curves for interest rates. The upwards-curving component of the interest yield can be explained by the liquidity premium. The reason behind this is that short term securities are...

Hump shaped yield curve and liquidity premium theory

This short lecture will present the financial definition of interest and discuss the factors that affect nominal interest rates; including inflation, default risk, maturity risk (yield curve) and liquidity risk.
Learning business English is like learning a new language.

published: 28 Mar 2010

Why is LIQUIDITY So Important?

When it comes to trading betting exchanges, liquidity is king. In fact, without it not a lot else matters. In order to limit your risk and maximize profits, you must have GENUINE betting liquidity. In this Q & A Caan clears up an important point; something that in most cases, goes misunderstood! Betting liquidity.
Follow my sports trading journey here:
https://www.youtube.com/caanberry
—
► Subscribe to my channel here: https://t.co/CXlzOLkhqT
—
Caan Berry successful Betfair trader featured by Betfair, matchbook, and Betdaq. Specialising in horse racing, tennis on the sports exchange market.
Make sure to stay tuned for Caan’s latest videos on how to trade on the sports exchange market.
—
Follow MeOnline Here:
Instagram: http://instagram.com/caanberry
Facebook: http://facebook.com/caanbe...

What is LIQUIDITY PREMIUM? What does LIQUIDITY PREMIUM mean? LIQUIDITY PREMIUM meaning - LIQUIDITY PREMIUM definition - LIQUIDITY PREMIUM explanation.
Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license.
SUBSCRIBE to our Google Earth flights channel - https://www.youtube.com/channel/UC6UuCPh7GrXznZi0Hz2YQnQ
In economics, a liquidity premium is the explanation for a difference between two types of financial securities (e.g. stocks), that have all the same qualities except liquidity. It is a segment of a three-part theory that works to explain the behavior of yield curves for interest rates. The upwards-curving component of the interest yield can be explained by the liquidity premium. The reason behind this is that short term securities are less risky compared to long term rates due to the difference in maturity dates. Therefore investors expect a premium, or risk premium for investing in the risky security. Liquidity risk premiums are recommended to be used with longer term investments, where those particular investments are illiquid.
Assets that are traded on an organized market are more liquid. Financial disclosure requirements are more stringent for quoted companies. For a given economic result, organized liquidity and transparency make the value of quoted share higher than the market value of an unquoted share.

What is LIQUIDITY PREMIUM? What does LIQUIDITY PREMIUM mean? LIQUIDITY PREMIUM meaning - LIQUIDITY PREMIUM definition - LIQUIDITY PREMIUM explanation.
Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license.
SUBSCRIBE to our Google Earth flights channel - https://www.youtube.com/channel/UC6UuCPh7GrXznZi0Hz2YQnQ
In economics, a liquidity premium is the explanation for a difference between two types of financial securities (e.g. stocks), that have all the same qualities except liquidity. It is a segment of a three-part theory that works to explain the behavior of yield curves for interest rates. The upwards-curving component of the interest yield can be explained by the liquidity premium. The reason behind this is that short term securities are less risky compared to long term rates due to the difference in maturity dates. Therefore investors expect a premium, or risk premium for investing in the risky security. Liquidity risk premiums are recommended to be used with longer term investments, where those particular investments are illiquid.
Assets that are traded on an organized market are more liquid. Financial disclosure requirements are more stringent for quoted companies. For a given economic result, organized liquidity and transparency make the value of quoted share higher than the market value of an unquoted share.

This short lecture will present the financial definition of interest and discuss the factors that affect nominal interest rates; including inflation, default ri...

This short lecture will present the financial definition of interest and discuss the factors that affect nominal interest rates; including inflation, default risk, maturity risk (yield curve) and liquidity risk.
Learning business English is like learning a new language.

This short lecture will present the financial definition of interest and discuss the factors that affect nominal interest rates; including inflation, default risk, maturity risk (yield curve) and liquidity risk.
Learning business English is like learning a new language.

Why is LIQUIDITY So Important?

When it comes to trading betting exchanges, liquidity is king. In fact, without it not a lot else matters. In order to limit your risk and maximize profits, you...

When it comes to trading betting exchanges, liquidity is king. In fact, without it not a lot else matters. In order to limit your risk and maximize profits, you must have GENUINE betting liquidity. In this Q & A Caan clears up an important point; something that in most cases, goes misunderstood! Betting liquidity.
Follow my sports trading journey here:
https://www.youtube.com/caanberry
—
► Subscribe to my channel here: https://t.co/CXlzOLkhqT
—
Caan Berry successful Betfair trader featured by Betfair, matchbook, and Betdaq. Specialising in horse racing, tennis on the sports exchange market.
Make sure to stay tuned for Caan’s latest videos on how to trade on the sports exchange market.
—
Follow MeOnline Here:
Instagram: http://instagram.com/caanberry
Facebook: http://facebook.com/caanberrytrader
Website: http://caanberry.com
Twitter: http://twitter.com/caanberrytrader
Medium: http://medium.com/@caanberry
Subscribe for free lessons and product giveaways:
http://caanberry.com/subscribe-now

When it comes to trading betting exchanges, liquidity is king. In fact, without it not a lot else matters. In order to limit your risk and maximize profits, you must have GENUINE betting liquidity. In this Q & A Caan clears up an important point; something that in most cases, goes misunderstood! Betting liquidity.
Follow my sports trading journey here:
https://www.youtube.com/caanberry
—
► Subscribe to my channel here: https://t.co/CXlzOLkhqT
—
Caan Berry successful Betfair trader featured by Betfair, matchbook, and Betdaq. Specialising in horse racing, tennis on the sports exchange market.
Make sure to stay tuned for Caan’s latest videos on how to trade on the sports exchange market.
—
Follow MeOnline Here:
Instagram: http://instagram.com/caanberry
Facebook: http://facebook.com/caanberrytrader
Website: http://caanberry.com
Twitter: http://twitter.com/caanberrytrader
Medium: http://medium.com/@caanberry
Subscribe for free lessons and product giveaways:
http://caanberry.com/subscribe-now

What is LIQUIDITY PREMIUM? What does LIQUIDITY PREMIUM mean? LIQUIDITY PREMIUM meaning - LIQUIDITY PREMIUM definition - LIQUIDITY PREMIUM explanation.
Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license.
SUBSCRIBE to our Google Earth flights channel - https://www.youtube.com/channel/UC6UuCPh7GrXznZi0Hz2YQnQ
In economics, a liquidity premium is the explanation for a difference between two types of financial securities (e.g. stocks), that have all the same qualities except liquidity. It is a segment of a three-part theory that works to explain the behavior of yield curves for interest rates. The upwards-curving component of the interest yield can be explained by the liquidity premium. The reason behind this is that short term securities are less risky compared to long term rates due to the difference in maturity dates. Therefore investors expect a premium, or risk premium for investing in the risky security. Liquidity risk premiums are recommended to be used with longer term investments, where those particular investments are illiquid.
Assets that are traded on an organized market are more liquid. Financial disclosure requirements are more stringent for quoted companies. For a given economic result, organized liquidity and transparency make the value of quoted share higher than the market value of an unquoted share.

This short lecture will present the financial definition of interest and discuss the factors that affect nominal interest rates; including inflation, default risk, maturity risk (yield curve) and liquidity risk.
Learning business English is like learning a new language.

Liquidity premium

In economics, a liquidity premium is the explanation for a difference between two types of financial securities (e.g. stocks), that have all the same qualities except liquidity. It is a segment of a three-part theory that works to explain the behavior of yield curves for interest rates. The upwards-curving component of the interest yield can be explained by the liquidity premium. The reason behind this is that short term securities are less risky compared to long term rates due to the difference in maturity dates. Therefore investors expect a premium, or risk premium for investing in the risky security. Liquidity risk premiums are recommended to be used with longer term investments, where those particular investments are illiquid.

Assets that are traded on an organized market are more liquid. Financial disclosure requirements are more stringent for quoted companies. For a given economic result, organized liquidity and transparency make the value of quoted share higher than the market value of an unquoted share.